Insurance internet leads are a marketing must. Whether or not these leads generate a successful conversion to book and closed sales will depend on several variables. If you find your agents have lackluster results from the financial investment of procuring these leads, then they may need some help maximizing the return of investment in these sales leads. You may also need to verify the quality of the leads.
Insurance Internet Lead Stats
Statistically, 25% of salespeople make two attempts to contact a lead but then stop calling the contact. However, only 2% of calls are successful on the first contact, and only 3% are successful on the third contact. Only 10% of salespeople attempt a third call, but 80% of sales are actually made on the fifth call. The moral of this statistical story is that a persistent contact strategy is worth the time invested.
Persistence pays off for insurance internet leads. Forty percent of the leads convert with long term relationships.
Lead Sale Tips
If your agents are committed to creating relationships with the prospects on the insurance internet leads, then the relationship is more likely to succeed. Agents do more than close sales; they develop relationships with customers. Some tips to achieve successful sales etiquette include:
- Be Courteous: While this might seem redundant, engaging a prospect with friendly and respectful dialogue and tone from the first contact will set the stage for a communicative relationship with the customer.
- Be Prepared: If possible, understand your prospective client. If a salesperson takes the time to understand the customer’s needs, they will be more prepared to propose a catered and specific resolution to the customer’s insurance needs.
- Follow Up: Technology is fluid; follow up by a call, text message, or email.
- Timing: Some days and times are better when contacting customers. Fluctuating the times and days in which attempted contact or follow-ups are made can increase the chance of a successful connection.
These tips will help agents maximize the return of investment on the insurance internet leads, but it is also important to research the right leads for your agency. When searching for lead providers, a little additional research will help you understand if the lead provider is right for you and your agency.
Need some tips on becoming a more successful broker? Here are 5 habits every broker should develop.
Not All Leads are Equal
How a lead provider sources its leads is arguably more valuable information than how much those leads cost. Generated leads may come through ad services, organic searches, or website referrals. Of these, the organic search is often the best lead generation source. These leads are potential customers who are searching for an upcoming or immediate insurance need.
The lead content is also important to successful lead conversion: the more information a lead provider can give, the better. The information provided can give valuable research information that will prepare the agent when targeting the sales pitch to a customer’s specific needs.
Whether a lead is exclusive or shared is also important. The value of the lead is affected if you are the only agency calling the prospective customer. Shared leads, of course, are sold to multiple agencies. In this environment, the prospective customer will have multiple agencies calling and vying for the sale closing. Exclusive leads are somewhat self-explanatory in that they are sold exclusively to one agency. The exclusive leads, however, are significantly more costly than the shared leads. One added benefit of the exclusive leads comes from lead generation companies, which provide live transfer calls. These leads are live calls that propose a transfer of a live and interested customer directly to the agency for conversion or closing.
Most leads will average a cost of $10 to $20 per lead, and no list is without its “junk leads.” The closing rate of insurance leads varies from 8% to 15%, depending on the insurance line. The closings are not without invested work, however, and the persistence and follow-through of the agent making the sales contact will make or break the successful return of investment on the insurance internet leads.
FAQs
Any time that you spend on generating leads is time that you can't spend on other important things for your business, including but not limited to actually working the leads you have to convert them into customers. And since time is money in business, buying insurance leads can actually be very cost-effective.
Should I buy insurance leads? ›
Paying for leads gives you access to as many potential clients as you want (and can afford)—which frees up your time to focus on selling. Access to people ready to purchase: Cold leads can take time to nurture and guide through your sales funnel—if they convert at all.
What is the average cost of insurance leads? ›
How much do life insurance leads cost? Real-time, exclusive life insurance leads can be purchased online ranging anywhere from $20 to $50 per lead. These expensive leads are often prohibitive for the beginner insurance salesperson, or for companies looking to purchase massive quantities of leads.
Where do insurance leads come from? ›
Telemarketing insurance leads are collected via phone, either by you or a third-party company that will sell contacts. They are most commonly proven to be good leads, as many agents that speak to them over the phone can gather plenty of useful information.
How do you generate leads to sell insurance? ›
15 Tips To Generating More Life Insurance Leads
- Finding Prospects On LinkedIn. ...
- Networking With Other Professionals. ...
- Start A Blog. ...
- Create A Content Marketing Campaign. ...
- Listing Sites And Directories. ...
- Maintain A Social Media Presence. ...
- Run A Referral Program. ...
- Google Search Ads.
Cons of buying leads
- It's more expensive than getting leads yourself.
- Leads are sometimes shared with other business owners.
- Lots of business owners complain that the lead quality is very low.
- Leads are not always pre-qualified or interested in speaking to you.
- You need to chase leads to get an appointment.
Typically an insurance carrier would pay ~$70 for an auto insurance lead - depending on the quality of the lead and the number of leads that come from the source.
Do insurance agents have to pay for leads? ›
While some insurance agencies provide staff with leads, there is a high chance that these leads may have already been contacted by several other insurance agents. This is especially true in a notoriously competitive line such as life insurance. Agents, however, can also pay to obtain exclusive life insurance leads.
Who pays the most for leads? ›
What Industries Pay the Most for Leads
- B2B Lead Generation. B2B lead gen is one of the most lucrative markets when it comes to obtaining leads. ...
- Healthcare Lead Generation. ...
- Real Estate Lead Generation. ...
- Automotive Lead Generation. ...
- Finance Lead Generation. ...
- Legal lead generation.
In this guide, you'll learn about the following tips to generate free insurance leads:
- Network in community and industry events.
- Create new online resources for prospects.
- Write guest blogs.
- Participate in directories and listing sites.
- Ask for referrals.
- Stay active on social media.
- Learn more organic marketing tactics.
Leads are the driving force behind sales and growth. By buying pre-qualified leads, you can increase the value and ROI of your direct marketing efforts and bring the highest quality leads to your business. Is your business thriving?
How do State Farm agents get leads? ›
You'll want to look for a provider that offers you access to high-intent consumers who are shopping for insurance on reputable websites you can trust. At MediaAlpha, our high-quality leads are sourced exclusively from our high-quality, owned-and-operated insurance shopping websites and a network of trusted partners.
Who is responsible for leads? ›
Smarketing (“sales” + “marketing”) is a process involving the alignment of sales and marketing teams on common goals within a company or organization with the aim of improving business performance. This means that generating leads is the responsibility of BOTH marketing and sales.
How profitable is selling insurance? ›
Whether you are selling them to employers or individuals, these policies tend to be large, with significant annual premiums. In the first year, a life insurance agent can earn anywhere from 30% to 90% of this premium, along with 5% to 10% of premiums paid in later years.
How do you create your own leads? ›
Lead generation is the process of attracting prospects to your business and increasing their interest through nurturing, all with the end goal of converting them into a customer. Some ways to generate leads are through job applications, blog posts, coupons, live events, and online content.
How do you get customers as an insurance agent? ›
How to get and retain clients for your insurance business
- Find your niche. ...
- Build an online presence. ...
- Network in your community. ...
- Prospect every day. ...
- Partner with other professionals.
Life insurance is a very difficult product to sell. Simply getting your prospect to acknowledge and discuss the fact they are going to die is a hard first step.
Are live transfer insurance leads worth it? ›
Most insurance agents know that whether it is live transfer life insurance leads, health insurance live transfers or auto insurance live transfer leads, the likelihood of prospects actually buying insurance is high because they've already invested both time and energy in seeking out a new insurance carrier.
How good are life insurance leads? ›
Life insurance leads are notoriously tricky because people give false information before feeling out a live agent who eventually gets the truth out of them. Life leads tend to give agents the most trouble (compared with, say, auto insurance). This is through no fault of the leads generation company.
Are lead generation companies worth it? ›
Whether you try to do it in-house or use a lead gen company, a concerted effort to amp up your leads is going to cost you. As we noted above, the upside of the lead gen company option is that it can be less expensive than hiring full-time employees. That said, hiring a lead gen company can still be a hefty investment.
